REAL ESTATE: Analyst sees huge cash influx

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In an economy where money powers the engine, the commercial real estate world, at least on a global scope, will not be hurting for capital in the coming years.

A report released last week by NAI Global said the amount of money likely to be invested in the markets will be “staggering,” as long as the economic recovery continues to happen. This report was delivered in Beverly Hills by Kenneth Linneman, chief economist at NAI Global. Some 700 people, mostly officials at NAI Capital and their clients, attended the conference.

However, Linneman’s remarks beg the question about how universal this rush of investment will be. The most cash has been flowing to the cities with some of the best job growth, which includes Minneapolis, Seattle, Austin and Washington, D.C. Orange County is also on that list.

But Los Angeles and Inland Southern California were cited as two metropolitan areas as having “recession-level” unemployment. In March it was 9.4 percent in the Inland area and 8.7 percent in Los Angeles County. Orange County, on the other hand, has a very enviable jobless rate of 5.8 percent.

One piece of the puzzle that works in the Inland area’s favor is the need for more warehouse space, especially with the growth of e-commerce and a tight supply of inventory. Investors have been interested in industrial space in San Bernardino and Riverside counties; this report does not suggest that the interest will taper off.

FONTANA CENTER SELLS

The Shops at Sierra Lakes, a two-building retail center in Fontana that is adjacent to a larger complex, has been sold to a Laguna Hills investor, according to a statement from Faris Lee Investments, which represented sellers PRP Investors-Fontana

The buyer was Farsai Fontana, and the company paid $7.84 million for the property, which is 94 percent occupied.

AS DOES ONE IN MONTCLAIR

The Montclair Town Center, a 97,000-square-foot shopping atea anchored by Dollar General, 24-Hour Fitness and a Bank of America branch, has been sold for more than $15.8 million, according to a statement.

The seller was a group based in Rancho Cucamonga. The property was purchased by Montclair-ET, based in Encino.

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